What you need to know about the CN Énergie Group. Investor Composition of Inc. (NASDAQ: CNEY)

A look at the shareholders of CN Energy Group. Inc. (NASDAQ: CNEY) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

With a market capitalization of US $ 108 million, CN Energy Group is a small-cap stock, so it might be overlooked by many institutional investors. Our analysis of company ownership, below, shows that institutions are not entered in the share register. We can zoom in on the different ownership groups to find out more about CN Energy Group.

NasdaqCM: Breakdown of CNEY ownership September 25, 2021

What does the lack of institutional ownership tell us about the CN Énergie Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their liking. But it is unusual to see large companies without any institutional investor.

There are many reasons why a company may not have institutions listed in the share register. It can be difficult for institutions to buy large amounts of stocks if liquidity (the number of stocks traded each day) is low. If the company did not need to raise capital, institutions might not have the opportunity to build up a position. It is also possible that the fund managers do not own the stock because they are not convinced that it will perform well. Institutional investors may not find the company’s historical growth impressive, or there may be other factors at play. You can see for yourself the past revenue performance of CN Energy Group below.

profit and revenue growthNasdaqCM: CNEY Profit and Revenue Growth September 25, 2021

CN Energy Group is not owned by hedge funds. Zhang Yefang is currently the largest shareholder, with 22% of the shares outstanding. In comparison, the second and third shareholders hold around 9.2% and 6.8% of the capital.

Upon closer inspection, we found that more than half of the company’s stock is owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. As far as I know, there is no analyst coverage of the company, so it probably goes under the radar.

Insider property of the CN Énergie Group

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders retain a significant stake in CN Energy Group. Inc .. Insiders have a US $ 46 million stake in the US $ 108 million company. I would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.

General public property

The general public, with a 37% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand CN Energy Group, there are many other factors that we need to consider. To this end, you should inquire about the 3 warning signs we spotted with CN Energy Group (including 1 which does not suit us too much).

Sure this might not be the best stock to buy. So take a look at this free free list of interesting companies.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link

Comments are closed.